Recent Amendment in GST

The country is under Lockdown form 25th of March 2020 and till the first Unlock the department is working at the backend continuously so that the trade and industry does not suffer much.

The country is under Lockdown form 25th of March 2020 and till the first Unlock the department is working at the backend continuously so that the trade and industry does not suffer much. The due dates for the lockdown are extended and also refunds were disbursed to the taxpayers it will provide them some legroom to meet their operational expenses. The departmental officers are working during the lockdown from their houses like the private sector employees who are working from homes. Stringent IT security norms were also followed by way of using Virtual Private Network, so that there are not data leakages or theft and at the same time some of the states have also taken assessment or hearing through video conferencing and WhatsApp video calls etc to clear the pending work wherever the taxpayers were able to join and share the data. During the lockdown period the following notifications / circulars were issued to facilitate the trade and industry about 18 notifications and five circulars have been issued.

Notification No. 44/2020 – Central Tax dated 8th June 2020

The taxpayers can file GSTR-3B by SMS in case of NIL returns and the effective date for filing of returns through SMS is 8th June 2020. The facility of filing of NIL GSTR – 3B through SMS will help about 22 lac taxpayers.

Q 1. What is NIL GSTR – 3B mean?

Nil GSTR – 3B means

  • The taxpayer has not made any outward supplies of goods or services or both
  • The taxpayer has not made any supplies which are Nil Rate or Exempt or Non-GST Supplies
  • Does not have any late fee or interest for the current month or late fee carried forwarded
  • Do not have any tax liability for which tax has to be paid on reverse charge
  • Does not have any other form of tax liability

Q 2. Which class of taxpayers can avail this facility?

Filing of Nil GSTR – 3B return using SMS can be filed by the following category of taxpayers

  • Normal taxpayers
  • Casual taxpayers
  • SEZ
  • SEZ Developers

Q 3. Are there any perquisites for filing of GSTR – 3B through SMS?

Yes, there are certain perquisites for filing of NIL Return through SMS and they are

  • Authorized signatories phone number must be registered with GST Portal
  • GSTR – 3B returns of the previous months are filed till date
  • There is no pending payment of Late Fee, Interest or tax liability
  • There are not GSTR – 3B Returns in Saved Status

Q 4. Can the authorized signatory mobile number can be used for more than on registration number?

No, the authorized signatories’ number cannot be same for more than one taxpayer.

Q 5. What is the number to which SMS has to be sent for filing NIL return through SMS?

The SMS has to be sent to 14409

Q 6. What is the message format for sending the SMS for filing of Nil GSTR – 3B?

The message has to be sent in the following format from the registered mobile number


Example: Nil 3B 26AAAAA1111AAA1 06/2020

Q 7. Will I get any validation message on sending the NIL return filing message?

Yes, you will get a validation message on sending the Nil return filing message. It is 4-digit number.

Q 8. What is to be done with the validation message received and what the format of sending the same?

The validation message has to be sent again to 14409


Q 9. Will I get any confirmation message once I send the validation message?

Yes, a confirmation message will be received along with the ARN number once the validation number is sent to 14409.

Q 10. From which month I can use SMS facility to file GSTR – 3B Nil return through SMS?

The same can be used from the month of May 2020 as the effective date given in the Notification No 44/2020 – Central Tax dated 8th June 2020

Notification No. 45/2020 – Central Tax dated 9th June 2020

The special procedure prescribed for the taxpayers who are having principal place of business in the erstwhile Union territory of Daman and Diu or in the erstwhile Union territory of Dadra and Nagar Haveli till the 26th day of January, 2020; and is in the merged Union territory of Daman and Diu and Dadra and Nagar Haveli from the 27th day of January, 2020 onwards, have to do it before 31st May 2020 as per Notification No 10/2020–Central Tax dated 21st March 2020 has been extended up to 31st July 2020.

Notification No. 46/2020 – Central Tax dated 9th June 2020

The time limit for the reply of notices issued for rejection of refund has been extended due to the prevailing pandemic situation. The due date for reply of notices has been extended up to 30th June 2020 for the notices for which the due date is falling between 20th March 2020 to 29th June 2020.

Notification No. 47/2020 – Central Tax dated 9th June 2020

The validity of e-waybills has been extended up to 30th June 2020 for the e-waybills issued on or before 24th of March 2020 and expiring on or after 20th March 2020. The effective date of this notification is 31st May 2020.

Circular No 139 – dated 10th June 2020

Refunds are issued in GST on Zero Rated Supplies, inverted duty structure and excess payment of taxes. Circular No.135/05/2020 – GST dated 31st March 2020 has been issued by replacing the circulars issued previously. There were some challenges being faced by the trade and industry on the same as it was mandatory for the refunds to be processed based on the invoices reflected in GSTR – 2A. There will be cases where the taxpayer is eligible to take input tax credit on the import of goods, reverse charge or on the input service distributor invoices but these invoices are not being reflected in the GSTR – 2A.

Now, with this circular the refunds can be processed based on the invoices even if they are not reflected in GSTR – 2A for transaction related to reverse charge, ISD invoices and import transactions.

Circular No 140 – dated 10th June 2020

With the rollout of GST from 1st July 2020, there was confusion on the director’s remuneration on payments made to them. This confusion has added some more controversy based on the Orders issued by the Advance Ruling Benches.

One of the recent Order passed by Clay Crafts India Pvt Ltd by the Rajasthan Bench has said that the Revere Charge is applicable on the remuneration paid to the directors under GST as it is considered to be the supply. Company is considered to be recipient and the directors as supplier of services and as per the provisions of Entry No 6 of Notification No. 13/2017 Central Tax (Rate) dated 28th June 2017 attracts reverse charge.

The above ruling as well as the Order issued by the Karnataka Bench in the case of M/s Alcon Consulting Engineers (India) Pvt. Ltd., has also said that remuneration paid to the directors is also payable under Reverse Charge.

The Circular has laid rest to this confusion and said that if the director is on the payroll of the company and the income tax is deducted under Section 192 of the Income Tax 1961 is not under Section 194 J then the relation between the director and the company is falling under Schedule III of the CGST Act 2017 where it is treated as relation between employee and employer.


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